Marc Spilker, who has been with Goldman for 16 years, takes over from George Walker, who left to run Lehman Brothers' asset management business earlier this year.
Mr Spilker moves from the role of co-head of US equities trading and global head of volatility trading at the securities group to take the reins at Goldman's private equity and hedge fund strategies group.
Control of the firm's Global Alpha fund will remain under Mark Carhart and Raymond Iwanowski at the quantitative strategies group.
On November 30th, Goldman revealed it had $145 billion of alternative assets under management, including hedge funds, private equity and real estate funds, a rise of 32 per cent.
A statement from the investment bank, reported by Bloomberg, said: "Marc Spilker's new assignment adds more focus to an area of investment management that we believe differentiates us from others. This expanded focus allows us to continue our growth and maintain our leadership position in the industry.''